NWS POSTS MIXED RESULTS

National Wine & Spirits has experienced a drop in net income for the nine months ending December 30 from $8.4 million in 2004 to $4.6 million. However, sales for the nine month period looked good, rising to $551 million from last year’s $434.4 million.

The quarter ending December 30 also took a hit in net income and decreased to $1.4 million from 2004’s $4.4 million. Sales for the quarter increased to $218.1 million as compared to last year’s $159.1 million. The Company’s long term debt increased $52.8 million from March 31, 2005.

NWS stated, “The Company’s expanded brand representation in certain markets resulted in greater total product sales revenue and case volume during the quarter ended December 30, 2005. Countering the increased revenue, however, were flat revenue and gross profit in certain of the Company's product sales markets, higher operating costs and increased interest expense, when compared to the prior year's comparable quarter.”